Living Here Houses In Winter Wonderlands
“It snows almost every day here and when we look out the windows, the conifers are draped in white, and it seems as if we’ve walked into a postcard.”'
As told to BETHANY LYTTLE
Published: December 28, 2007
Don: It snows almost every day here and when we look out the windows, the conifers are draped in white, and it seems as if we’ve walked into a postcard. From the great room with its huge fireplace, we will often see elk grazing.
It’s been three and a half years since we bought this lot, which is in a community called Suncadia. And it’s been a lot of hard work to get the house built, but it’s been worth it. Our lives have been on the desert side of Washington state along the Columbia River where we farm. When you live in a desert area, you miss the snow and the trees. Some people long for a vacation where it’s sunny and warm. We look forward to the snow.
Some people know the town of Roslyn from the television show “Northern Exposure.” It’s a great location. We’re close enough to the Pacific Ocean to get large amounts of snow at a time, and we’re on the east side of the Cascades, so the views are spectacular. And there’s a purity to the environment that’s hard to describe.
During the holidays, we entertain a lot and the house, which is timber frame, was designed with seven master suites. During the day, everyone congregates to go skiing, snowboarding, snowmobiling or walking in the woods, but at night when it’s time for bed, everyone has a cozy, private place to retreat to.
Monday, December 17, 2007
"LIFE IS NEVER BORING...BUT SOME PEOPLE CHOOSE TO BE BORED." Wayne Dyer Yet even if Traders had wanted to be bored last week, the financial markets had other plans. Volatility reigned supreme, with large swings throughout the week in Stocks, Bonds, and home loan rates — and once the smoke cleared, home loan rates were slightly worse than where they began the week.
What caused all the volatility? You name it — continuing concerns on the liquidity and stability of the financial markets; the Federal Reserve at work, cutting the Fed Funds and Discount Rates by .25% and the opening of a new auction facility; a red hot Retail Sales Report; and last but certainly not least, the Producer and Consumer Price Indices both showing inflation to be much higher than expected.
The big mover was the Fed rate cut of .25%, which was a disappointment to the financial markets, as a deeper cut was hoped for. The reaction was very negative for stocks, as the fear of a recession amidst the current credit crunch grows. There are increasing concerns that the Fed is not getting ahead of this problem.
But it is not an easy job for the Fed because they may be fighting a possible recession with a hand tied behind their back...this is due to higher levels of inflation. Surely inflation is still at reasonable levels, but even a little stronger inflation can take a major toll on our lifestyle over time. High levels of inflation have caused unrest, revolt, poverty and wars. It is possible that the Great Inflation of 1920 in Germany eventually led to WWII. During that time, prices rose over an almost unimaginable 1000 times a year! Savings were wiped out and imagine this...the cost of a loaf of bread went from 20 Marks to 20,000 to 20,000,000. And in Mexico, hyperinflation caused a crisis in the peso that has led to extreme levels of poverty. Of course, the US is nowhere close to this type of problem, but inflation is a very serious issue. And with the current rate of inflation in the US ticking higher and towards the upper range of acceptable limits, additional Fed cuts would push inflation even higher. So should the Fed risk a recession to protect against inflation or move to avoid recession and risk inflation? This will likely be one of the hotter economic topics of 2008.
What caused all the volatility? You name it — continuing concerns on the liquidity and stability of the financial markets; the Federal Reserve at work, cutting the Fed Funds and Discount Rates by .25% and the opening of a new auction facility; a red hot Retail Sales Report; and last but certainly not least, the Producer and Consumer Price Indices both showing inflation to be much higher than expected.
The big mover was the Fed rate cut of .25%, which was a disappointment to the financial markets, as a deeper cut was hoped for. The reaction was very negative for stocks, as the fear of a recession amidst the current credit crunch grows. There are increasing concerns that the Fed is not getting ahead of this problem.
But it is not an easy job for the Fed because they may be fighting a possible recession with a hand tied behind their back...this is due to higher levels of inflation. Surely inflation is still at reasonable levels, but even a little stronger inflation can take a major toll on our lifestyle over time. High levels of inflation have caused unrest, revolt, poverty and wars. It is possible that the Great Inflation of 1920 in Germany eventually led to WWII. During that time, prices rose over an almost unimaginable 1000 times a year! Savings were wiped out and imagine this...the cost of a loaf of bread went from 20 Marks to 20,000 to 20,000,000. And in Mexico, hyperinflation caused a crisis in the peso that has led to extreme levels of poverty. Of course, the US is nowhere close to this type of problem, but inflation is a very serious issue. And with the current rate of inflation in the US ticking higher and towards the upper range of acceptable limits, additional Fed cuts would push inflation even higher. So should the Fed risk a recession to protect against inflation or move to avoid recession and risk inflation? This will likely be one of the hotter economic topics of 2008.
Wednesday, December 12, 2007
Cost vs. Value
When It Comes to Remodeling, It’s What’s Outside That Counts, Realtors® Report
WASHINGTON, December 03, 2007 -
Many buyers judge a house by its exterior, or so it seems from the results of the 2007 Remodeling Cost vs. Value Report. Three of the four projects with the highest national percentage of costs recouped this year were exterior upgrades.
The most profitable project on the national level was upscale siding replacement, recouping 88 percent of costs upon resale. Wood deck additions and wood window replacements also returned more than 80 percent of costs, at 85 percent and 81 percent, respectively. On a national average, the only interior project to return more than 80 percent of remodeling costs this year was a minor kitchen remodel, returning 83 percent of project costs at resale.
“The results of this year’s Cost vs. Value report underscore the importance of curb appeal in the buyer’s eye,” said NAR President Dick Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif. “Realtors® know what attracts buyers in their local markets and can help your house put its best façade forward, so to speak – it’s another way Realtors® add value to the real estate transaction.”
The 2007 Remodeling Cost vs. Value Report compares construction costs with resale values for 29 midrange and upscale remodeling projects comprising additions, remodels and replacements in 60 markets across the country. Data are provided for nine U.S. regions, following the divisions established by the U.S. Census Bureau. This is the 10th consecutive year that the report, which is produced by Hanley Wood, LLC, was completed in cooperation with REALTOR® Magazine, as Realtors® provided their insight into local markets and buyer home preferences within those markets.
Four new projects were added this year: the aforementioned wood deck addition, a back-up power generator, and both a midrange and upscale garage addition. Nationally, the back-up power generator only returned 58 percent of the investment on resale, although the return was highest in the West South Central region, which comprises Arkansas, Louisiana, Oklahoma, and Texas, at 68 percent. Buyers in the Pacific region of Alaska, California, Hawaii, Oregon and Washington value their garages: The midrange garage addition returned nearly 70 percent nationally but 88 percent in this region, while the upscale garage addition returned approximately 65 percent nationally but 78 percent in this area.
Homeowners in the Pacific region could also expect to see some of the highest percentages of remodeling expenses returned at resale, with 13 of the 29 projects returning 90 percent or higher of project costs. Homeowners in the East North Central region of Illinois, Indiana, Michigan, Ohio and Wisconsin might expect some of the lowest returns; only one project – upscale fiber cement siding – returned more than 80 percent upon resale (82 percent of costs recouped), while nine projects returned less than 60 percent of project costs.
The least profitable projects were a back-up power generator, sunroom addition, and home office remodel. The back-up power generator returned the lowest percentage of initial cost in the East North Central, New England (Connecticut, Massachusetts, Maine, New Hampshire, Rhode Island, and Vermont), Pacific, and West North Central (Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota) regions.
Sunrooms are least popular in the East South Central (Alabama, Kentucky, Mississippi and Tennessee), Mountain (Arizona, Colorado, Idaho, Montana, Nevada, New Mexico and Wyoming), and West South Central regions. Home office remodels return the lowest percentage of project costs in the Middle Atlantic (New Jersey, New York and Pennsylvania) and South Atlantic (Delaware, District of Columbia, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia and West Virginia) regions.
Gaylord explained that the resale value of any given remodeling project depends on a variety of factors. “When considering a remodeling project, particularly with an eye toward resale, it’s important to evaluate your home’s current condition, how the project will change the existing space in your home, as well as how your remodeled home will compare to other homes in your community,” said Gaylord.
“For example, using a breakfast nook to expand the kitchen seems like a good use of space, but using the same space to add a first-floor bathroom in an older home that doesn’t have one will draw more buyers,” Gaylord said. “Realtors® see hundreds, if not thousands, of homes every year with their buyer clients and can provide valuable insight into what projects and improvements will make a difference with buyers in your area.”
Results of the report are summarized in the December 2007 issue of REALTOR® Magazine.
WASHINGTON, December 03, 2007 -
Many buyers judge a house by its exterior, or so it seems from the results of the 2007 Remodeling Cost vs. Value Report. Three of the four projects with the highest national percentage of costs recouped this year were exterior upgrades.
The most profitable project on the national level was upscale siding replacement, recouping 88 percent of costs upon resale. Wood deck additions and wood window replacements also returned more than 80 percent of costs, at 85 percent and 81 percent, respectively. On a national average, the only interior project to return more than 80 percent of remodeling costs this year was a minor kitchen remodel, returning 83 percent of project costs at resale.
“The results of this year’s Cost vs. Value report underscore the importance of curb appeal in the buyer’s eye,” said NAR President Dick Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif. “Realtors® know what attracts buyers in their local markets and can help your house put its best façade forward, so to speak – it’s another way Realtors® add value to the real estate transaction.”
The 2007 Remodeling Cost vs. Value Report compares construction costs with resale values for 29 midrange and upscale remodeling projects comprising additions, remodels and replacements in 60 markets across the country. Data are provided for nine U.S. regions, following the divisions established by the U.S. Census Bureau. This is the 10th consecutive year that the report, which is produced by Hanley Wood, LLC, was completed in cooperation with REALTOR® Magazine, as Realtors® provided their insight into local markets and buyer home preferences within those markets.
Four new projects were added this year: the aforementioned wood deck addition, a back-up power generator, and both a midrange and upscale garage addition. Nationally, the back-up power generator only returned 58 percent of the investment on resale, although the return was highest in the West South Central region, which comprises Arkansas, Louisiana, Oklahoma, and Texas, at 68 percent. Buyers in the Pacific region of Alaska, California, Hawaii, Oregon and Washington value their garages: The midrange garage addition returned nearly 70 percent nationally but 88 percent in this region, while the upscale garage addition returned approximately 65 percent nationally but 78 percent in this area.
Homeowners in the Pacific region could also expect to see some of the highest percentages of remodeling expenses returned at resale, with 13 of the 29 projects returning 90 percent or higher of project costs. Homeowners in the East North Central region of Illinois, Indiana, Michigan, Ohio and Wisconsin might expect some of the lowest returns; only one project – upscale fiber cement siding – returned more than 80 percent upon resale (82 percent of costs recouped), while nine projects returned less than 60 percent of project costs.
The least profitable projects were a back-up power generator, sunroom addition, and home office remodel. The back-up power generator returned the lowest percentage of initial cost in the East North Central, New England (Connecticut, Massachusetts, Maine, New Hampshire, Rhode Island, and Vermont), Pacific, and West North Central (Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota) regions.
Sunrooms are least popular in the East South Central (Alabama, Kentucky, Mississippi and Tennessee), Mountain (Arizona, Colorado, Idaho, Montana, Nevada, New Mexico and Wyoming), and West South Central regions. Home office remodels return the lowest percentage of project costs in the Middle Atlantic (New Jersey, New York and Pennsylvania) and South Atlantic (Delaware, District of Columbia, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia and West Virginia) regions.
Gaylord explained that the resale value of any given remodeling project depends on a variety of factors. “When considering a remodeling project, particularly with an eye toward resale, it’s important to evaluate your home’s current condition, how the project will change the existing space in your home, as well as how your remodeled home will compare to other homes in your community,” said Gaylord.
“For example, using a breakfast nook to expand the kitchen seems like a good use of space, but using the same space to add a first-floor bathroom in an older home that doesn’t have one will draw more buyers,” Gaylord said. “Realtors® see hundreds, if not thousands, of homes every year with their buyer clients and can provide valuable insight into what projects and improvements will make a difference with buyers in your area.”
Results of the report are summarized in the December 2007 issue of REALTOR® Magazine.
Monday, December 10, 2007
What's In and Out for Home Buyers
Mark Nash, author of four real estate books including “1001 Tips for Buying and Selling a Home”, has completed his annual survey of 886 real estate agents in all fifty states in the U.S. and the eight provinces of Canada. “What’s in, What’s out with Homebuyers” illuminates what’s popular with home buyers, and what can sour them. Compiled annually from-the-trenches, it offers a spectrum of tips that cover deal and design no-no’s for home sellers and buyer must-haves.
What’s In
- Home buyers. What goes around comes around. Relegated during the boom years to bidding wars, over-full-price offers and new construction lotteries, buyers rule in 2008, and know it. With swelling inventories, they are looking for newly updated kitchens and baths, pristine conditions, and a perception of value.
- Destination bathrooms. The master bath has evolved into the home getaway with multiple task areas. Freestanding or “throne” bathtubs (bath thrones) in the center of a soaking room, multiple flat screens TV’s, and wireless Internet so you don’t miss anything as you move from bathing to grooming to lounging. They are outfitted with serving bars featuring wine coolers, espresso machines, and grazing snacks. There is also a burgeoning need for in-home hair salons.
- Short Sales. Home owners who have over-extended themselves financially are increasingly looking to their mortgage holder to accept less than is owed on their property. Some mortgagee’s will accept less than is owed through a short sale, in place of taking ownership of a home back through foreclosure.
- Pet showers. The kitchen or work sink is out for the dog bath. Dedicated dog showers are an emerging trend. Be it in a mud or utility room, garage corner or basement, dog lovers want a place to clean their favored pooch after a visit to the neighborhood dog park. Common dog showers feature a 3′ x 3′ shower base, surrounded by ceramic tile 4′ up the wall. Pet showers are all about the convenience for Fido to step in, and eliminate the master’s need to lift.
- Home elevators. The boomers want their vertical palaces with elegant min-elevators. No more unsightly and very 1970s chair-on-the-rail-system for these financially flush, forward-thinking home buyers.
- Outdoor living spaces that look interior. Massive, soaring “statement” fireplaces of cut stone, heated (think bathroom floors) flooring and walkways, entertaining sized custom kitchens, and indoor-looking artwork, fabrics, and finishes, but ones that can stand up to the elements.
- Down payments. Sexy home mortgages are out. Those who underwrite home loans are looking for substance from potential home buyers. Substance equates into disciplined savings and credit scores.
- A home’s carbon footprint. Manufactured homes, reused construction materials, and energy-friendly mechanical systems and appliances all reduce the need for fossil fuels. Home buyers are asking about how their potential new home can save the planet. It’s more than a trend, it’s a convenient truth.
- Monitoring and controlling with hand-held devices. Forgot to turn off the coffee maker, close/open the blinds, and turn the heat down or the air conditioning up? The latest in technology that utilize hand-held devices to open or close the blinds, turn on or off lights, or let Fido out the electronic pet door, around the corner or across the country.
- Floating Homes. Not just in Sausalito. If your hood has calm protected waters, you’ll soon have floating homes, those that look like conventional, soil-situated structures. From Louisiana to Vancouver, floating homes are at the top of must-have lists for those looking for a primary home to be lifestyle oriented. Plus, watching sunsets are a more enjoyable and greener alternative to lawn mowing.
- Concealed appliances. Buyers bypass matching cabinet panels that are used to disguise the ubiquitous refrigerator and dishwasher. Hinged and pocket doors are the latest way to integrate visually those boxy necessities and make the kitchen more non-traditional and less functional looking.
- Non-smoking Homeowners Associations. Who knew that some Homeowner Associations are rewriting by-laws and declarations to include those unit owners are not allowed to smoke inside their homes? Smoke-free common areas in addition to building-code-required ventilation systems and fresh-smelling hallways have taken precedence over individual’s rights to light up in their recliner.
- Off-grid homes. Solar panels, windmills and inverters are here to stay, in a big way. With brown-outs and power line-damaging storms on the increase, buyers in 2008 will ask for hybrid home-energy options, even being partially off-grid beats getting expensive power from coal-fired utilities, to these eco-energy users.
What’s Out
- Unrealistic home sellers. These relics of another time and market missed the cocktail party chat and water cooler angst by the transitional sellers of 2007. Cautions included: pricing their home right, consider home-sale contingencies, and offer closing cost givebacks. Hear-no-evil-sellers were overlooked by buyers who pined for reality minded ones. Because if sellers were flexible with buyers needs, buyers bought.
- Living rooms. The great room has replaced the living room in American residential culture. Informal lifestyles with eating, cooking and living spaces combined so family members and visiting friends can congregate together through various activities has conquered the forced museum. In viewing homes with buyers, I see the ex-museum used as work-out spaces, home offices, craft or hobby places, and I’ve seen more than once, the coveted living room with nothing more than a pool table as its solitary focus.
- Empty for sale homes. Buyers thought people “lived” in houses, but after seeing one-quarter of the homes they viewed empty, they wondered. Even though staging was the buzzword, getting that right was prickly in 2007. Those leftover silk flowers, the left behind mis-matched furniture, and the one-off design-show decorating scheme were buyer no-no’s. Neutral palettes, personal objects, thoughtful furniture rental, and something in the refrigerator says to buyers, maybe a person lives here.
- Double-digit home value appreciation. For now, the home as “get-rich-quick” investment is over. We’re back to pre-boom norm of housing or shelter. Flat or low single-digit appreciation in most markets in 2008.
- “Order-taking” real estate agents. The hive during the boom years was real estate, and multitudes of the dot-com-busted became the worker-bees of real estate sales. Everyone and anyone got licensed and into the frenzy. Little did they know that seasoned (pre-boom), full-time, professional agents possessed ready, willing and able buyers, knew how to sooth seller’s anxieties, and produced the fifth highest year in real estate sales in 2007.
- McMansions. Size doesn’t matter if it’s not well finished. A large voluminous home whose best attribute is the square-footage is waning. Home buyers are looking for quality, not quantity in 2008. After all, who has the money to replace the faux-hardwood floors, builder grade carpet and fiberglass bathtubs?
- Obese ceiling heights. It’s cheaper to go up than out. That’s been the thinking anyway as of late in residential design. Buyers have finally said enough, they prefer ceilings between nine and eleven feet. Anything more, especially in a smallish (under 10′ x 12′) room is waste. If you can’t add a loft in a soaring room, “down size me” height-wise, buyers say.
- Pioneering locations. Buyers have moved away from take-a-chance-hoods. Pioneering or off the beaten path areas were once the hot bed of potential appreciation. However, buyers in 2008 have returned to the tried-and-true address, keeping resale desirability firmly in mind when making a purchase.
- Balconies as a marketing gimmick. Functional outdoor space, not the anorexic appendage hanging off the building, is what buyers crave in outdoor space for 2008. Real balconies have room for a grill and a comfortable table and chairs. People love the outdoors and want to use it, but not only as a solo experience.
- Option ARMS (Adjustable Rate Mortgage). Buyers have heard that these loans usually have only one option; foreclosure. Used by the rich for short-term financing, they were re-packaged to buyers who wanted to qualify for the highest loan amount. Negative amortization is the harsh reality of Option ARMS. Home buyers should run, not walk, if these words are proposed as a financing option.
- Pre-construction pricing on new construction. Builders who are plunging ahead with new projects in 2008 will be better off with one pricing model from beginning to end, and eliminating their “everything’s an upgrade” mentality.
What’s on the Way Out
- Mosaic tile. Once deemed the ultimate in tile, now considered a very personal design commitment to the previous owner. The cost and waste to remove intricate mosaic is over-whelming to buyers, especially if it is has been recently installed. Even the most expensive, but not agreeable, tile could kill an otherwise acceptable property.
- Retro-1970s chic. Trend-obsolescence by buyers in 2007 was rampant. Loving the retro-seventies was easy, but hearing horror stories from would-be sellers about the market’s hesitance to buy a design white-elephant, made more main stream kitchens and baths a sensible decision. As one Gen X buyer said to me; “I love the dark espresso colored shag carpeting, but, I know my decorating needs will change, I want an interior that will transcend trends.” I replied, “You’re looking for a ‘transcendent look” and her response: “exactly.”
What’s In
- Home buyers. What goes around comes around. Relegated during the boom years to bidding wars, over-full-price offers and new construction lotteries, buyers rule in 2008, and know it. With swelling inventories, they are looking for newly updated kitchens and baths, pristine conditions, and a perception of value.
- Destination bathrooms. The master bath has evolved into the home getaway with multiple task areas. Freestanding or “throne” bathtubs (bath thrones) in the center of a soaking room, multiple flat screens TV’s, and wireless Internet so you don’t miss anything as you move from bathing to grooming to lounging. They are outfitted with serving bars featuring wine coolers, espresso machines, and grazing snacks. There is also a burgeoning need for in-home hair salons.
- Short Sales. Home owners who have over-extended themselves financially are increasingly looking to their mortgage holder to accept less than is owed on their property. Some mortgagee’s will accept less than is owed through a short sale, in place of taking ownership of a home back through foreclosure.
- Pet showers. The kitchen or work sink is out for the dog bath. Dedicated dog showers are an emerging trend. Be it in a mud or utility room, garage corner or basement, dog lovers want a place to clean their favored pooch after a visit to the neighborhood dog park. Common dog showers feature a 3′ x 3′ shower base, surrounded by ceramic tile 4′ up the wall. Pet showers are all about the convenience for Fido to step in, and eliminate the master’s need to lift.
- Home elevators. The boomers want their vertical palaces with elegant min-elevators. No more unsightly and very 1970s chair-on-the-rail-system for these financially flush, forward-thinking home buyers.
- Outdoor living spaces that look interior. Massive, soaring “statement” fireplaces of cut stone, heated (think bathroom floors) flooring and walkways, entertaining sized custom kitchens, and indoor-looking artwork, fabrics, and finishes, but ones that can stand up to the elements.
- Down payments. Sexy home mortgages are out. Those who underwrite home loans are looking for substance from potential home buyers. Substance equates into disciplined savings and credit scores.
- A home’s carbon footprint. Manufactured homes, reused construction materials, and energy-friendly mechanical systems and appliances all reduce the need for fossil fuels. Home buyers are asking about how their potential new home can save the planet. It’s more than a trend, it’s a convenient truth.
- Monitoring and controlling with hand-held devices. Forgot to turn off the coffee maker, close/open the blinds, and turn the heat down or the air conditioning up? The latest in technology that utilize hand-held devices to open or close the blinds, turn on or off lights, or let Fido out the electronic pet door, around the corner or across the country.
- Floating Homes. Not just in Sausalito. If your hood has calm protected waters, you’ll soon have floating homes, those that look like conventional, soil-situated structures. From Louisiana to Vancouver, floating homes are at the top of must-have lists for those looking for a primary home to be lifestyle oriented. Plus, watching sunsets are a more enjoyable and greener alternative to lawn mowing.
- Concealed appliances. Buyers bypass matching cabinet panels that are used to disguise the ubiquitous refrigerator and dishwasher. Hinged and pocket doors are the latest way to integrate visually those boxy necessities and make the kitchen more non-traditional and less functional looking.
- Non-smoking Homeowners Associations. Who knew that some Homeowner Associations are rewriting by-laws and declarations to include those unit owners are not allowed to smoke inside their homes? Smoke-free common areas in addition to building-code-required ventilation systems and fresh-smelling hallways have taken precedence over individual’s rights to light up in their recliner.
- Off-grid homes. Solar panels, windmills and inverters are here to stay, in a big way. With brown-outs and power line-damaging storms on the increase, buyers in 2008 will ask for hybrid home-energy options, even being partially off-grid beats getting expensive power from coal-fired utilities, to these eco-energy users.
What’s Out
- Unrealistic home sellers. These relics of another time and market missed the cocktail party chat and water cooler angst by the transitional sellers of 2007. Cautions included: pricing their home right, consider home-sale contingencies, and offer closing cost givebacks. Hear-no-evil-sellers were overlooked by buyers who pined for reality minded ones. Because if sellers were flexible with buyers needs, buyers bought.
- Living rooms. The great room has replaced the living room in American residential culture. Informal lifestyles with eating, cooking and living spaces combined so family members and visiting friends can congregate together through various activities has conquered the forced museum. In viewing homes with buyers, I see the ex-museum used as work-out spaces, home offices, craft or hobby places, and I’ve seen more than once, the coveted living room with nothing more than a pool table as its solitary focus.
- Empty for sale homes. Buyers thought people “lived” in houses, but after seeing one-quarter of the homes they viewed empty, they wondered. Even though staging was the buzzword, getting that right was prickly in 2007. Those leftover silk flowers, the left behind mis-matched furniture, and the one-off design-show decorating scheme were buyer no-no’s. Neutral palettes, personal objects, thoughtful furniture rental, and something in the refrigerator says to buyers, maybe a person lives here.
- Double-digit home value appreciation. For now, the home as “get-rich-quick” investment is over. We’re back to pre-boom norm of housing or shelter. Flat or low single-digit appreciation in most markets in 2008.
- “Order-taking” real estate agents. The hive during the boom years was real estate, and multitudes of the dot-com-busted became the worker-bees of real estate sales. Everyone and anyone got licensed and into the frenzy. Little did they know that seasoned (pre-boom), full-time, professional agents possessed ready, willing and able buyers, knew how to sooth seller’s anxieties, and produced the fifth highest year in real estate sales in 2007.
- McMansions. Size doesn’t matter if it’s not well finished. A large voluminous home whose best attribute is the square-footage is waning. Home buyers are looking for quality, not quantity in 2008. After all, who has the money to replace the faux-hardwood floors, builder grade carpet and fiberglass bathtubs?
- Obese ceiling heights. It’s cheaper to go up than out. That’s been the thinking anyway as of late in residential design. Buyers have finally said enough, they prefer ceilings between nine and eleven feet. Anything more, especially in a smallish (under 10′ x 12′) room is waste. If you can’t add a loft in a soaring room, “down size me” height-wise, buyers say.
- Pioneering locations. Buyers have moved away from take-a-chance-hoods. Pioneering or off the beaten path areas were once the hot bed of potential appreciation. However, buyers in 2008 have returned to the tried-and-true address, keeping resale desirability firmly in mind when making a purchase.
- Balconies as a marketing gimmick. Functional outdoor space, not the anorexic appendage hanging off the building, is what buyers crave in outdoor space for 2008. Real balconies have room for a grill and a comfortable table and chairs. People love the outdoors and want to use it, but not only as a solo experience.
- Option ARMS (Adjustable Rate Mortgage). Buyers have heard that these loans usually have only one option; foreclosure. Used by the rich for short-term financing, they were re-packaged to buyers who wanted to qualify for the highest loan amount. Negative amortization is the harsh reality of Option ARMS. Home buyers should run, not walk, if these words are proposed as a financing option.
- Pre-construction pricing on new construction. Builders who are plunging ahead with new projects in 2008 will be better off with one pricing model from beginning to end, and eliminating their “everything’s an upgrade” mentality.
What’s on the Way Out
- Mosaic tile. Once deemed the ultimate in tile, now considered a very personal design commitment to the previous owner. The cost and waste to remove intricate mosaic is over-whelming to buyers, especially if it is has been recently installed. Even the most expensive, but not agreeable, tile could kill an otherwise acceptable property.
- Retro-1970s chic. Trend-obsolescence by buyers in 2007 was rampant. Loving the retro-seventies was easy, but hearing horror stories from would-be sellers about the market’s hesitance to buy a design white-elephant, made more main stream kitchens and baths a sensible decision. As one Gen X buyer said to me; “I love the dark espresso colored shag carpeting, but, I know my decorating needs will change, I want an interior that will transcend trends.” I replied, “You’re looking for a ‘transcendent look” and her response: “exactly.”
Tuesday, December 4, 2007
Despite Builder Incentives-Sales Stay Flat
WASHINGTON, D.C. - Builder confidence in the market for new single-family homes remained unchanged in November due to continuing mortgage market problems, a substantial inventory overhang and ongoing concerns about the effects of negative media coverage, according to the latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI). The November HMI held even with October's upwardly revised 19 reading, its lowest point since the series began in January of 1985.
"Consistent with what builders said in last month's survey, many are reporting that their special sales incentives are having limited success in terms of getting buyers in the door," said NAHB President Brian Catalde, a home builder from El Segundo, Calif. Of particular concern, he noted, is that negative media reports are dissuading buyers and fueling unrealistic expectations regarding home price discounts.
"To be more specific," Catalde said, "builders are worried that the national media has tended to report negative housing stories as if there is one real estate market, when, in fact, there is no such thing - all housing markets are local. As a result, some healthy markets are being unfairly impacted by this negative media coverage."
"The message from today's report is that builders do not see any significant change in housing market conditions as compared to last month," said NAHB Chief Economist David Seiders. "While they continue to work down inventories of unsold homes and reposition themselves for the market's eventual recovery, they realize it will be some time before market conditions support an upswing in building activity - most likely by the second half of 2008."
Derived from a monthly survey that NAHB has been conducting for more than 20 years, the NAHB/Wells Fargo HMI gauges builder perceptions of current single-family home sales and sales expectations for the next six months as either "good," "fair" or "poor." The survey also asks builders to rate traffic of prospective buyers as either "high to very high," "average" or "low to very low." Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view sales conditions as good than poor.
In November, the index gauging current sales conditions for single-family homes remained flat at 18, while the index gauging sales expectations for the next six months declined a single point to 25. The index gauging traffic of prospective buyers rose two points to 17.
Regionally, the HMI results were mixed, with two regions reporting modest HMI gains and two reporting slight declines. The HMI for the Northeast gained one point to 27 and the HMI for the West gained three points to 18. Meanwhile, the HMI for the Midwest declined one point to 13 and the HMI for the South declined two points to 19.
"Consistent with what builders said in last month's survey, many are reporting that their special sales incentives are having limited success in terms of getting buyers in the door," said NAHB President Brian Catalde, a home builder from El Segundo, Calif. Of particular concern, he noted, is that negative media reports are dissuading buyers and fueling unrealistic expectations regarding home price discounts.
"To be more specific," Catalde said, "builders are worried that the national media has tended to report negative housing stories as if there is one real estate market, when, in fact, there is no such thing - all housing markets are local. As a result, some healthy markets are being unfairly impacted by this negative media coverage."
"The message from today's report is that builders do not see any significant change in housing market conditions as compared to last month," said NAHB Chief Economist David Seiders. "While they continue to work down inventories of unsold homes and reposition themselves for the market's eventual recovery, they realize it will be some time before market conditions support an upswing in building activity - most likely by the second half of 2008."
Derived from a monthly survey that NAHB has been conducting for more than 20 years, the NAHB/Wells Fargo HMI gauges builder perceptions of current single-family home sales and sales expectations for the next six months as either "good," "fair" or "poor." The survey also asks builders to rate traffic of prospective buyers as either "high to very high," "average" or "low to very low." Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view sales conditions as good than poor.
In November, the index gauging current sales conditions for single-family homes remained flat at 18, while the index gauging sales expectations for the next six months declined a single point to 25. The index gauging traffic of prospective buyers rose two points to 17.
Regionally, the HMI results were mixed, with two regions reporting modest HMI gains and two reporting slight declines. The HMI for the Northeast gained one point to 27 and the HMI for the West gained three points to 18. Meanwhile, the HMI for the Midwest declined one point to 13 and the HMI for the South declined two points to 19.
Thursday, November 29, 2007
Prepare Your Home To Sell
Every seller wants her home to sell fast and bring top dollar. Does that sound good to you? Well, it's not luck that makes that happen. It's careful planning and knowing how to professionally spruce up your home that will send home buyers scurrying for their checkbooks. Here is how to prep a house and turn it into an irresistible and marketable home.
1. Disassociate Yourself With Your Home.
Say to yourself, "This is not my home; it is a house -- a product to be sold much like a box of cereal on the grocery store shelf.
Make the mental decision to "let go" of your emotions and focus on the fact that soon this house will no longer be yours.
Picture yourself handing over the keys and envelopes containing appliance warranties to the new owners!
Say goodbye to every room.
Don't look backwards -- look toward the future.
2. De-Personalize.
Pack up those personal photographs and family heirlooms. Buyers can't see past personal artifacts, and you don't want them to be distracted. You want buyers to imagine their own photos on the walls, and they can't do that if yours are there! You don't want to make any buyer ask, "I wonder what kind of people live in this home?" You want buyers to say, "I can see myself living here."
3. De-Clutter!
People collect an amazing quantity of junk. Consider this: if you haven't used it in over a year, you probably don't need it.
If you don't need it, why not donate it or throw it away?
Remove all books from bookcases.
Pack up those knickknacks.
Clean off everything on kitchen counters.
Put essential items used daily in a small box that can be stored in a closet when not in use.
Think of this process as a head-start on the packing you will eventually need to do anyway.
Rearrange Bedroom Closets and Kitchen Cabinets. Buyers love to snoop and will open closet and cabinet doors. Think of the message it sends if items fall out! Now imagine what a buyer believes about you if she sees everything organized. It says you probably take good care of the rest of the house as well. This means:
Alphabetize spice jars.
Neatly stack dishes.
Turn coffee cup handles facing the same way.
Hang shirts together, buttoned and facing the same direction.
Line up shoes.
4. Rent a Storage Unit.
Almost every home shows better with less furniture. Remove pieces of furniture that block or hamper paths and walkways and put them in storage. Since your bookcases are now empty, store them. Remove extra leaves from your dining room table to make the room appear larger. Leave just enough furniture in each room to showcase the room's purpose and plenty of room to move around. You don't want buyers scratching their heads and saying, "What is this room used for?"
5. Remove/Replace Favorite Items.
If you want to take window coverings, built-in appliances or fixtures with you, remove them now. If the chandelier in the dining room once belonged to your great grandmother, take it down. If a buyer never sees it, she won't want it. Once you tell a buyer she can't have an item, she will covet it, and it could blow your deal. Pack those items and replace them, if necessary.
6. Make Minor Repairs.
Replace cracked floor or counter tiles.
Patch holes in walls.
Fix leaky faucets.
Fix doors that don't close properly and kitchen drawers that jam.
Consider painting your walls neutral colors, especially if you have grown accustomed to purple or pink walls. (Don't give buyers any reason to remember your home as "the house with the orange bathroom.")
Replace burned-out light bulbs.
If you've considered replacing a worn bedspread, do so now!
Make the House Sparkle!
Wash windows inside and out.
Rent a pressure washer and spray down sidewalks and exterior.
Clean out cobwebs.
Re-caulk tubs, showers and sinks.
Polish chrome faucets and mirrors.
Clean out the refrigerator.
Vacuum daily.
Wax floors.
Dust furniture, ceiling fan blades and light fixtures.
Bleach dingy grout.
Replace worn rugs.
Hang up fresh towels.
Bathroom towels look great fastened with ribbon and bows.
Clean and air out any musty smelling areas. Odors are a no-no.
Scrutinize.
Go outside and open your front door. Stand there. Do you want to go inside? Does the house welcome you?
Linger in the doorway of every single room and imagine how your house will look to a buyer.
Examine carefully how furniture is arranged and move pieces around until it makes sense.
Make sure window coverings hang level.
Tune in to the room's statement and its emotional pull. Does it have impact and pizzazz?
Does it look like nobody lives in this house? You're almost finished.
Check Curb Appeal.If a buyer won't get out of her agent's car because she doesn't like the exterior of your home, you'll never get her inside.
Keep the sidewalks cleared.
Mow the lawn.
Paint faded window trim.
Plant yellow flowers or group flower pots together. Yellow evokes a buying emotion. Marigolds are inexpensive.
Trim your bushes.
Make sure visitors can clearly read your house number.
1. Disassociate Yourself With Your Home.
Say to yourself, "This is not my home; it is a house -- a product to be sold much like a box of cereal on the grocery store shelf.
Make the mental decision to "let go" of your emotions and focus on the fact that soon this house will no longer be yours.
Picture yourself handing over the keys and envelopes containing appliance warranties to the new owners!
Say goodbye to every room.
Don't look backwards -- look toward the future.
2. De-Personalize.
Pack up those personal photographs and family heirlooms. Buyers can't see past personal artifacts, and you don't want them to be distracted. You want buyers to imagine their own photos on the walls, and they can't do that if yours are there! You don't want to make any buyer ask, "I wonder what kind of people live in this home?" You want buyers to say, "I can see myself living here."
3. De-Clutter!
People collect an amazing quantity of junk. Consider this: if you haven't used it in over a year, you probably don't need it.
If you don't need it, why not donate it or throw it away?
Remove all books from bookcases.
Pack up those knickknacks.
Clean off everything on kitchen counters.
Put essential items used daily in a small box that can be stored in a closet when not in use.
Think of this process as a head-start on the packing you will eventually need to do anyway.
Rearrange Bedroom Closets and Kitchen Cabinets. Buyers love to snoop and will open closet and cabinet doors. Think of the message it sends if items fall out! Now imagine what a buyer believes about you if she sees everything organized. It says you probably take good care of the rest of the house as well. This means:
Alphabetize spice jars.
Neatly stack dishes.
Turn coffee cup handles facing the same way.
Hang shirts together, buttoned and facing the same direction.
Line up shoes.
4. Rent a Storage Unit.
Almost every home shows better with less furniture. Remove pieces of furniture that block or hamper paths and walkways and put them in storage. Since your bookcases are now empty, store them. Remove extra leaves from your dining room table to make the room appear larger. Leave just enough furniture in each room to showcase the room's purpose and plenty of room to move around. You don't want buyers scratching their heads and saying, "What is this room used for?"
5. Remove/Replace Favorite Items.
If you want to take window coverings, built-in appliances or fixtures with you, remove them now. If the chandelier in the dining room once belonged to your great grandmother, take it down. If a buyer never sees it, she won't want it. Once you tell a buyer she can't have an item, she will covet it, and it could blow your deal. Pack those items and replace them, if necessary.
6. Make Minor Repairs.
Replace cracked floor or counter tiles.
Patch holes in walls.
Fix leaky faucets.
Fix doors that don't close properly and kitchen drawers that jam.
Consider painting your walls neutral colors, especially if you have grown accustomed to purple or pink walls. (Don't give buyers any reason to remember your home as "the house with the orange bathroom.")
Replace burned-out light bulbs.
If you've considered replacing a worn bedspread, do so now!
Make the House Sparkle!
Wash windows inside and out.
Rent a pressure washer and spray down sidewalks and exterior.
Clean out cobwebs.
Re-caulk tubs, showers and sinks.
Polish chrome faucets and mirrors.
Clean out the refrigerator.
Vacuum daily.
Wax floors.
Dust furniture, ceiling fan blades and light fixtures.
Bleach dingy grout.
Replace worn rugs.
Hang up fresh towels.
Bathroom towels look great fastened with ribbon and bows.
Clean and air out any musty smelling areas. Odors are a no-no.
Scrutinize.
Go outside and open your front door. Stand there. Do you want to go inside? Does the house welcome you?
Linger in the doorway of every single room and imagine how your house will look to a buyer.
Examine carefully how furniture is arranged and move pieces around until it makes sense.
Make sure window coverings hang level.
Tune in to the room's statement and its emotional pull. Does it have impact and pizzazz?
Does it look like nobody lives in this house? You're almost finished.
Check Curb Appeal.If a buyer won't get out of her agent's car because she doesn't like the exterior of your home, you'll never get her inside.
Keep the sidewalks cleared.
Mow the lawn.
Paint faded window trim.
Plant yellow flowers or group flower pots together. Yellow evokes a buying emotion. Marigolds are inexpensive.
Trim your bushes.
Make sure visitors can clearly read your house number.
Wednesday, November 28, 2007
Seattle August 2007 Home Sales
by Real Estate Analyst John Karevoll, October 1, 2007
The Seattle region's housing market continued to fare better than most last month but gravity has definitely returned: Sales fell to the lowest level for an August in five years, with the sharpest declines in the most affordable neighborhoods. Price appreciation continued to wane, a real estate information service reported.
A total of 6,497 new and resale houses and condos closed escrow in the Seattle-Tacoma-Bellevue metro area encompassing King, Snohomish and Pierce counties. That was up 0.5 percent from 6,464 in July but down 23.4 percent from 8,483 in August 2006, according to DataQuick Information Systems of La Jolla, Calif. The firm tracks real estate trends nationally via public property records.
Last month's sales total was the lowest for an August since 6,045 homes sold in August 2002, and it was 8.5 percent lower than the region's average 7,101 sales during the month of August over the past decade. Last month marked the 15th consecutive month in which regional sales have fallen on a year-over-year basis. The 23.4 percent annual sales decline was the largest for any month since sales fell 25.3 percent in March 2001.
The months-long trend of sales falling harder in lower-cost areas continued. Combined sales in zip codes with a median price below $300,000 dropped 35 percent in August compared with a year ago, while total sales in zips with a $500,000-plus median declined 18.6 percent. The percent of total resale activity occurring in zips with a $500,000-plus median rose to 24.9 percent, up from 22.7 percent a year ago. This analysis was based on resales of detached houses only in zips where at least 25 houses resold in August.
The median price paid for all metro area homes combined in August was $355,950, down 2.5 percent from the record $365,200 median in June. Last month?s median was also about 2.5 percent lower than the $365,000 median in July and was 3.9 percent higher than the $342,700 median in August 2006. Appreciation continues to ratchet down: A year ago the August median rose 13.9 percent on a year-over-year basis. And the last time the median saw a lower annual gain than last month's 3.9 percent increase was back in April 2003, when it rose 3.2 percent.
In August, each of the region's three counties saw its overall median sale price remain higher than a year ago but the annual gains were the lowest in several years, and all of the medians were below peak levels. King County's overall median was $399,950, up 4.7 percent from a year ago; Pierce County's $280,000, up 2.4 percent; and Snohomish's $345,000, up 3 percent.
The recent shift in Seattle and many other U.S. housing markets toward a greater portion of sales occurring outside the most affordable communities puts upward pressure on the median sale price, aside from any appreciation that might be occurring. Therefore, the year-over-year increases in the median are likely overstating the extent to which prices have risen in some areas.
Another gauge of home pricing, the median price paid per square foot for resale single-family (detached) houses, also suggests that appreciation has steadily declined this year. Last month Seattle's regional median per square foot fell to $237, down from a record of $240 reached in June and July. Each of the three county's median per square foot remained above year-ago levels last month but was 1 to 1.8 percent lower than the peak level reached earlier this year.
by Real Estate Analyst John Karevoll, October 1, 2007
The Seattle region's housing market continued to fare better than most last month but gravity has definitely returned: Sales fell to the lowest level for an August in five years, with the sharpest declines in the most affordable neighborhoods. Price appreciation continued to wane, a real estate information service reported.
A total of 6,497 new and resale houses and condos closed escrow in the Seattle-Tacoma-Bellevue metro area encompassing King, Snohomish and Pierce counties. That was up 0.5 percent from 6,464 in July but down 23.4 percent from 8,483 in August 2006, according to DataQuick Information Systems of La Jolla, Calif. The firm tracks real estate trends nationally via public property records.
Last month's sales total was the lowest for an August since 6,045 homes sold in August 2002, and it was 8.5 percent lower than the region's average 7,101 sales during the month of August over the past decade. Last month marked the 15th consecutive month in which regional sales have fallen on a year-over-year basis. The 23.4 percent annual sales decline was the largest for any month since sales fell 25.3 percent in March 2001.
The months-long trend of sales falling harder in lower-cost areas continued. Combined sales in zip codes with a median price below $300,000 dropped 35 percent in August compared with a year ago, while total sales in zips with a $500,000-plus median declined 18.6 percent. The percent of total resale activity occurring in zips with a $500,000-plus median rose to 24.9 percent, up from 22.7 percent a year ago. This analysis was based on resales of detached houses only in zips where at least 25 houses resold in August.
The median price paid for all metro area homes combined in August was $355,950, down 2.5 percent from the record $365,200 median in June. Last month?s median was also about 2.5 percent lower than the $365,000 median in July and was 3.9 percent higher than the $342,700 median in August 2006. Appreciation continues to ratchet down: A year ago the August median rose 13.9 percent on a year-over-year basis. And the last time the median saw a lower annual gain than last month's 3.9 percent increase was back in April 2003, when it rose 3.2 percent.
In August, each of the region's three counties saw its overall median sale price remain higher than a year ago but the annual gains were the lowest in several years, and all of the medians were below peak levels. King County's overall median was $399,950, up 4.7 percent from a year ago; Pierce County's $280,000, up 2.4 percent; and Snohomish's $345,000, up 3 percent.
The recent shift in Seattle and many other U.S. housing markets toward a greater portion of sales occurring outside the most affordable communities puts upward pressure on the median sale price, aside from any appreciation that might be occurring. Therefore, the year-over-year increases in the median are likely overstating the extent to which prices have risen in some areas.
Another gauge of home pricing, the median price paid per square foot for resale single-family (detached) houses, also suggests that appreciation has steadily declined this year. Last month Seattle's regional median per square foot fell to $237, down from a record of $240 reached in June and July. Each of the three county's median per square foot remained above year-ago levels last month but was 1 to 1.8 percent lower than the peak level reached earlier this year.
Tuesday, November 27, 2007
Prepare Your Home to Welcome Old Man Winter
Ice, snow and wind can have devastating consequences on the coziest of homes. Last winter alone there was over $1.5 billion dollars in insured losses due to burst pipes, frozen gutters and other weather-related disasters, according to the Insurance Information Institute (I.I.I.).
"It is when the leaves start to turn and not when the snow is beginning to fall that homeowners need to get ready for severe winter weather," says Jayna Neagle, spokeswoman for the I.I.I. "A little time and effort in October or November can prevent the heartache of burst pipes and other disasters when Old Man Winter brings snow, freezing temperatures and arctic winds.
The I.I.I. suggests that homeowners take the following precautions:
Maintain gutters. Remove leaves, acorns, sticks and other debris from gutters, so melting snow and ice can flow freely. This can prevent ice damming - a condition where water is unable to properly drain through the gutters and instead seeps into the house causing water to drip from the ceiling and walls. You may also consider installing "gutter guards." Available in most hardware and home stores, gutter guards are screens that prevent debris from entering the gutter and direct the flow of water away from the house and into the ground.
Trim trees and remove dead branches. Ice, snow and wind could cause weak trees or branches to break - damaging your home, car or injuring someone walking on your property.
Check insulation. Add extra insulation to attics, basements and crawl spaces. If too much heat escapes through the attic it can cause snow or ice to melt on the roof. The water re-freezes causing more snow and ice to build up. This can result in a collapsed roof, and can contribute to ice damming. Ideally, the attic should be five to ten degrees warmer than the outside air. Well-insulated basements and crawl spaces will also help protect pipes from freezing.
Maintain pipes. Wrap pipes with heating tape and insulate unfinished rooms such as garages that frequently have exposed pipes. Also, check for cracks and leaks. Have them repaired immediately to prevent much costlier repairs.
Keep the House Warm. The temperature in the home should be at least 65 degrees. The temperature inside the walls where the pipes are located is substantially colder than the walls themselves. A temperature lower than 65 degrees will not keep the pipes from freezing.
Check heating systems. The proper use and maintenance of furnaces, fireplaces and wood-burning stoves can prevent fire and smoke damage. Have furnaces, boilers and chimneys serviced at least once a year. Make sure that smoke and fire alarms are working properly and consider installing a carbon dioxide detector.
Make sure steps and handrails are in good shape. Broken stairs and banisters can become lethal when covered with snow and ice. Make repairs now to prevent someone from falling and seriously being injured.
Get to know your plumbing. Learn how to shut the water off and know where your pipes are located. If your pipes do freeze, time is of the essence. The quicker you can shut off the water or direct your plumber to the problem, the better chance you have to prevent the pipes from bursting.
Hire a licensed contractor. Have a professional survey your home for any structural damage. If damage is discovered, have it repaired now so further damage will not occur during the winter. Also, find out about ways to prevent water damage due to snow-related flooding. Plastic coatings for internal basement walls, sump pumps and other methods can prevent damage to your home and belongings.
Take special care if you plan to be away from home. If you are not going to be in your home this winter for an extended period of time, have the water system drained by a professional to keep pipes from freezing or bursting. Also, hire someone to check on your home on a regular basis. If there is a problem, it can be fixed quickly - lessening any damage. Activity at your home will also reduce the likelihood that it will be burglarized.
Standard homeowners policies cover winter-related disasters such as burst pipes, ice dams, wind damage caused by weight of ice or snow.
Damage to homes caused by flooding is usually excluded from most standard homeowner policies. Flood insurance is available from the National Flood Insurance Program. Ask your insurance professional about flood insurance, as well as specific advice about winter-proofing your home. Written by Realty Times Staff
Monday, November 26, 2007
MORTGAGE REFORM
Is Washington Ready For Mortgage Reform?
by Peter G. Miller as published on REALTYTIMES.com
Lenders and lawmakers have been clashing on Capitol Hill during the past few months, and now for the first time a serious attempt at mortgage reform has a chance of passage.
So far, the House of Representatives has approved the so-called "Mortgage Reform and Anti-Predatory Lending Act of 2007 by a veto-proof margin, 291-127.
In passing the reform bill, the House approved a series of benchmarks that would revolutionize the lending industry if the bill becomes law. For instance:
The bill says loan originators would have to be licensed. Licensing means that there would be educational standards and clear ethical requirements.
The legislation requires lenders to show that a borrower has a reasonable ability to repay a loan at the fully-indexed rate, not just a teaser rate. This means lenders will have to fully document virtually all loans to reduce their liability.
So why do some lenders like the House bill while other lenders and consumer groups are opposed?
Few lenders actually like the House bill, what some like is that it did not go as far as it might have gone. In other words, the reform bill is the best they could get.
Other lenders oppose the bill because they believe that for the first time lenders will have an obligation to get the best possible price and terms for borrowers, a standard that does not now exist for federally-regulated lenders or those in most states.
Meanwhile, while consumer and civil rights groups are generally happy with the reform bill, they want it to go further. For instance, AARP, the AFL-CIO and the Consumer Federation of America say the bill does not provide sufficient grounds to sue unscrupulous lenders.
Stay tuned. The great mortgage debate of 2007 has just begun.
by Peter G. Miller as published on REALTYTIMES.com
Lenders and lawmakers have been clashing on Capitol Hill during the past few months, and now for the first time a serious attempt at mortgage reform has a chance of passage.
So far, the House of Representatives has approved the so-called "Mortgage Reform and Anti-Predatory Lending Act of 2007 by a veto-proof margin, 291-127.
In passing the reform bill, the House approved a series of benchmarks that would revolutionize the lending industry if the bill becomes law. For instance:
The bill says loan originators would have to be licensed. Licensing means that there would be educational standards and clear ethical requirements.
The legislation requires lenders to show that a borrower has a reasonable ability to repay a loan at the fully-indexed rate, not just a teaser rate. This means lenders will have to fully document virtually all loans to reduce their liability.
So why do some lenders like the House bill while other lenders and consumer groups are opposed?
Few lenders actually like the House bill, what some like is that it did not go as far as it might have gone. In other words, the reform bill is the best they could get.
Other lenders oppose the bill because they believe that for the first time lenders will have an obligation to get the best possible price and terms for borrowers, a standard that does not now exist for federally-regulated lenders or those in most states.
Meanwhile, while consumer and civil rights groups are generally happy with the reform bill, they want it to go further. For instance, AARP, the AFL-CIO and the Consumer Federation of America say the bill does not provide sufficient grounds to sue unscrupulous lenders.
Stay tuned. The great mortgage debate of 2007 has just begun.
Monday, November 19, 2007
Thanksgiving Facts
A DAY OF THANKS
Thanksgiving is upon us! This popular autumn holiday traces its roots back to a three-day feast held in 1621 to celebrate the blessing of a bountiful harvest. It took more than 240 years, however, for Thanksgiving to become a national holiday. In 1863, President Abraham Lincoln finally proclaimed the last Thursday of November as a national day of thanksgiving. Years later, President Franklin Roosevelt stated that Thanksgiving should always be celebrated on the fourth Thursday of the month--as opposed to the occasional fifth Thursday.
Mmmm... Eel and Seal. My favorite!
What exactly did the pilgrims eat at the first Thanksgiving? According to food historian Kathleen Curtin, the answer may surprise you. In addition to wild turkey, other popular sources of meat that were likely served include eel, clams, lobster, wild goose, eagles, venison, and seal...yes, seal. Peas, beans, and carrots were probably on the table, but sweet potatoes and corn on the cob weren't. And although pumpkins were likely consumed, pumpkin pie wasn't...because no such thing existed at that time.
Talking Turkey...272 Million Turkeys!
The popularity of turkeys during the holidays and throughout the year has turned turkey farming into a big business. In fact, the USDA National Agricultural Statistics Service estimates that 272 million turkeys will be raised in the US this year alone. That's an increase of 4% over 2006!
Weighing In on What We Eat
Ever wonder how many cranberries, pumpkins, and other Thanksgiving Day foods we go through each year? The US Census Bureau has the skinny! According to their research, the US produces some serious poundage when it comes to these holiday favorites, including:
690 million pounds of cranberries
1.6 billion pounds of sweet potatoes
1 billion pounds of pumpkins
841,280 tons of snap green beans
No wonder we feel so full after those holiday meals!
Can Turkey Really Make You Tired?
Here's how the story goes. Turkey contains tryptophan...which helps the body produce niacin...which then helps produce serotonin. And serotonin is the key to this theory because it calms the brain and induces sleep.
The problem with that theory is that tryptophan actually works best on an empty stomach-which most of us don't have after our Thanksgiving feast! So, it's more likely that the heaviness and the high carbohydrate content of the entire Thanksgiving meal are responsible for that sense of lethargy you feel, as your body works to digest it all. Add a glass of wine or a cocktail to your meal, and you'll increase that sense of sleepiness even more.
Here's to another happy Thanksgiving Day for you and yours! As always, if you have any questions or need any assistance, please don't hesitate to call.
Thanksgiving is upon us! This popular autumn holiday traces its roots back to a three-day feast held in 1621 to celebrate the blessing of a bountiful harvest. It took more than 240 years, however, for Thanksgiving to become a national holiday. In 1863, President Abraham Lincoln finally proclaimed the last Thursday of November as a national day of thanksgiving. Years later, President Franklin Roosevelt stated that Thanksgiving should always be celebrated on the fourth Thursday of the month--as opposed to the occasional fifth Thursday.
Mmmm... Eel and Seal. My favorite!
What exactly did the pilgrims eat at the first Thanksgiving? According to food historian Kathleen Curtin, the answer may surprise you. In addition to wild turkey, other popular sources of meat that were likely served include eel, clams, lobster, wild goose, eagles, venison, and seal...yes, seal. Peas, beans, and carrots were probably on the table, but sweet potatoes and corn on the cob weren't. And although pumpkins were likely consumed, pumpkin pie wasn't...because no such thing existed at that time.
Talking Turkey...272 Million Turkeys!
The popularity of turkeys during the holidays and throughout the year has turned turkey farming into a big business. In fact, the USDA National Agricultural Statistics Service estimates that 272 million turkeys will be raised in the US this year alone. That's an increase of 4% over 2006!
Weighing In on What We Eat
Ever wonder how many cranberries, pumpkins, and other Thanksgiving Day foods we go through each year? The US Census Bureau has the skinny! According to their research, the US produces some serious poundage when it comes to these holiday favorites, including:
690 million pounds of cranberries
1.6 billion pounds of sweet potatoes
1 billion pounds of pumpkins
841,280 tons of snap green beans
No wonder we feel so full after those holiday meals!
Can Turkey Really Make You Tired?
Here's how the story goes. Turkey contains tryptophan...which helps the body produce niacin...which then helps produce serotonin. And serotonin is the key to this theory because it calms the brain and induces sleep.
The problem with that theory is that tryptophan actually works best on an empty stomach-which most of us don't have after our Thanksgiving feast! So, it's more likely that the heaviness and the high carbohydrate content of the entire Thanksgiving meal are responsible for that sense of lethargy you feel, as your body works to digest it all. Add a glass of wine or a cocktail to your meal, and you'll increase that sense of sleepiness even more.
Here's to another happy Thanksgiving Day for you and yours! As always, if you have any questions or need any assistance, please don't hesitate to call.
Monday, October 22, 2007
Prices, Inventory Still Rising, Sales Still Slower Around Washington State
News from NW Multiple Listing Service - FOR IMMEDIATE RELEASE: October 5, 2007
KIRKLAND , Wash. (Oct. 5, 2007) – With Halloween on the horizon, should buyers be spooked about the local housing market? Not according to the latest figures from Northwest Multiple Listing Service and reactions from some brokers who believe now is an ideal time to be making offers.
Trying to time the market is “a fool’s game,” remarked one MLS director. “If you are buying a home to live in for more than three years, then buy the one you love, not the one that you can save $25,000 on," advises Matt Deasy, general manager at Windermere Real Estate/East Inc. in Bellevue.
J. Lennox Scott, chairman and CEO of John L. Scott Real Estate said now is “an ideal time for buyers.”
Just-released figures from Northwest MLS indicate prices are still rising but inventory levels may have peaked. Sales, though, are still sluggish compared to year-ago volumes.
Brokers added 12,385 new listings to inventory during September – the fewest number since February when they added 11,333 new listings. When added to the existing offerings, there are nearly 49,000 residential properties for sale across 19 counties. That’s about 33 percent more than a year ago.
“Buyers have an excellent selection of homes and condos today in all price ranges,” said NWMLS director Dick Beeson, broker/owner of Windermere Real Estate/Commencement Associates in Tacoma. He believes the market is slowly starting to turn. “With inventory starting to dip slightly, buyer's choices will be reduced as the year progresses,” Beeson suggests.
The condominium inventory is about 62 percent larger than a year ago, thanks in part to the addition of several new projects coming on line. The MLS analysis shows about three of every 10 condos currently offered for sale is classified as new construction.
“The time is right for buyers on the sidelines to step forward. They have many more home choices now than in the past few years,” observed Marcie Maxwell, adding, “and they may have opportunities to negotiate with sellers.” Maxwell, an associate broker at Windermere Real Estate in Renton and Certified Residential Specialist, has been selling real estate for 18 years. She cites the example of a well-located 3-bedroom home with a remodeled kitchen on a large lot in Renton. She is surprised it has not yet sold, considering less than a year ago it probably would have been in a bidding war. “There are a lot of nice homes for sale in the $200,000-to-$400,000 range,” Maxwell remarked.
MLS brokers reported 5,748 pending sales (offers made and accepted, but not yet closed) during September, about 32 percent fewer than 12 months ago. (For the same month a year ago, members notched 8,499 pending sales.) Through nine months, pending sales are at about 89 percent of last year’s volume.
Prices area-wide for sales of single family homes and condos (combined) that closed during September rose more than 4 percent compared to a year ago. Seven counties (Cowlitz, Grant, Grays Harbor, Kitsap, Mason, Pacific and San Juan) registered double-digit price gains from 12 months ago.
For single family homes (excluding condos) prices are up about 3.7 percent from a year ago. In the four-county Puget Sound market, Kitsap County claimed the largest year-over-year gain at 12.8 percent, followed by King County at 5.9 percent. The median price of a home that sold in Snohomish County rose about 2.7 percent compared to a year ago, while Pierce County report a very slight (1 percent) dip.
Condominium price gains continued to outperform single family homes. Area-wide, condo prices surged nearly 10 percent from a year ago. For condo sales that closed last month in King County, the median price was $299,900, a jump of 14.8 percent from the year-ago figure of $261,250.
“As expected, the turbulent mortgage market continues to have an effect on home sales,” observed Lennox Scott of John L. Scott Real Estate. However, he added, “Every week things are getting better. Interest rates are still low, the local economy is healthy, and job growth is strong. This is an ideal time for buyers because they no longer have to pay the pricing premium that existed in previous years. There is less competition for homes, yet prices continue to appreciate, creating a great opportunity for buyers to position themselves for the future.”
The current market presents some good opportunities for both buyers and sellers, according to industry insiders.
Now is a good time for buyers to negotiate favorable terms of sale – but not always with a price reduction, Beeson suggests. For example, he said buyers may ask to have certain personal property included in the agreement, such as washer/dryer, lawn mowers, swing set, hot tubs, satellite dish and furnishings. Closing dates that favor the buyer and a seller’s willingness to make repairs as indicated by inspections are other items that can be negotiated, he noted.
Beeson expects homes near urban centers and employment centers will become more expensive as demand outpaces supply. He also anticipates rising demand for services from professional agents. “The professional agents of 2007 are educating their buyers and sellers like never before, and both parties need to listen and follow their advice so they will make wise and prudent decisions,” he emphasized.
Daniel Kennedy, president of the Seattle-King County Association of Realtors, agreed, saying sellers with unreasonably priced properties or who have homes that not properly prepared for showing will be disappointed. “Buyers are savvy and will not put up with previewing overpriced houses,” he remarked. Sellers should heed their agent’s advice when they are counseled to de-clutter, clean or make minor repairs, according to Kennedy, an associate at Coldwell Banker Bain in Seattle
Northwest Multiple Listing Service, based in Kirkland, is the largest full-service MLS in the Northwest. The MLS is owned by its member brokers and currently encompasses nearly 2,100 companies with more than 26,000 sales associates. Together, they serve 19 counties, mostly in western Washington, plus Grant, Kittitas and Okanogan counties in the central part of the state.
KIRKLAND , Wash. (Oct. 5, 2007) – With Halloween on the horizon, should buyers be spooked about the local housing market? Not according to the latest figures from Northwest Multiple Listing Service and reactions from some brokers who believe now is an ideal time to be making offers.
Trying to time the market is “a fool’s game,” remarked one MLS director. “If you are buying a home to live in for more than three years, then buy the one you love, not the one that you can save $25,000 on," advises Matt Deasy, general manager at Windermere Real Estate/East Inc. in Bellevue.
J. Lennox Scott, chairman and CEO of John L. Scott Real Estate said now is “an ideal time for buyers.”
Just-released figures from Northwest MLS indicate prices are still rising but inventory levels may have peaked. Sales, though, are still sluggish compared to year-ago volumes.
Brokers added 12,385 new listings to inventory during September – the fewest number since February when they added 11,333 new listings. When added to the existing offerings, there are nearly 49,000 residential properties for sale across 19 counties. That’s about 33 percent more than a year ago.
“Buyers have an excellent selection of homes and condos today in all price ranges,” said NWMLS director Dick Beeson, broker/owner of Windermere Real Estate/Commencement Associates in Tacoma. He believes the market is slowly starting to turn. “With inventory starting to dip slightly, buyer's choices will be reduced as the year progresses,” Beeson suggests.
The condominium inventory is about 62 percent larger than a year ago, thanks in part to the addition of several new projects coming on line. The MLS analysis shows about three of every 10 condos currently offered for sale is classified as new construction.
“The time is right for buyers on the sidelines to step forward. They have many more home choices now than in the past few years,” observed Marcie Maxwell, adding, “and they may have opportunities to negotiate with sellers.” Maxwell, an associate broker at Windermere Real Estate in Renton and Certified Residential Specialist, has been selling real estate for 18 years. She cites the example of a well-located 3-bedroom home with a remodeled kitchen on a large lot in Renton. She is surprised it has not yet sold, considering less than a year ago it probably would have been in a bidding war. “There are a lot of nice homes for sale in the $200,000-to-$400,000 range,” Maxwell remarked.
MLS brokers reported 5,748 pending sales (offers made and accepted, but not yet closed) during September, about 32 percent fewer than 12 months ago. (For the same month a year ago, members notched 8,499 pending sales.) Through nine months, pending sales are at about 89 percent of last year’s volume.
Prices area-wide for sales of single family homes and condos (combined) that closed during September rose more than 4 percent compared to a year ago. Seven counties (Cowlitz, Grant, Grays Harbor, Kitsap, Mason, Pacific and San Juan) registered double-digit price gains from 12 months ago.
For single family homes (excluding condos) prices are up about 3.7 percent from a year ago. In the four-county Puget Sound market, Kitsap County claimed the largest year-over-year gain at 12.8 percent, followed by King County at 5.9 percent. The median price of a home that sold in Snohomish County rose about 2.7 percent compared to a year ago, while Pierce County report a very slight (1 percent) dip.
Condominium price gains continued to outperform single family homes. Area-wide, condo prices surged nearly 10 percent from a year ago. For condo sales that closed last month in King County, the median price was $299,900, a jump of 14.8 percent from the year-ago figure of $261,250.
“As expected, the turbulent mortgage market continues to have an effect on home sales,” observed Lennox Scott of John L. Scott Real Estate. However, he added, “Every week things are getting better. Interest rates are still low, the local economy is healthy, and job growth is strong. This is an ideal time for buyers because they no longer have to pay the pricing premium that existed in previous years. There is less competition for homes, yet prices continue to appreciate, creating a great opportunity for buyers to position themselves for the future.”
The current market presents some good opportunities for both buyers and sellers, according to industry insiders.
Now is a good time for buyers to negotiate favorable terms of sale – but not always with a price reduction, Beeson suggests. For example, he said buyers may ask to have certain personal property included in the agreement, such as washer/dryer, lawn mowers, swing set, hot tubs, satellite dish and furnishings. Closing dates that favor the buyer and a seller’s willingness to make repairs as indicated by inspections are other items that can be negotiated, he noted.
Beeson expects homes near urban centers and employment centers will become more expensive as demand outpaces supply. He also anticipates rising demand for services from professional agents. “The professional agents of 2007 are educating their buyers and sellers like never before, and both parties need to listen and follow their advice so they will make wise and prudent decisions,” he emphasized.
Daniel Kennedy, president of the Seattle-King County Association of Realtors, agreed, saying sellers with unreasonably priced properties or who have homes that not properly prepared for showing will be disappointed. “Buyers are savvy and will not put up with previewing overpriced houses,” he remarked. Sellers should heed their agent’s advice when they are counseled to de-clutter, clean or make minor repairs, according to Kennedy, an associate at Coldwell Banker Bain in Seattle
Northwest Multiple Listing Service, based in Kirkland, is the largest full-service MLS in the Northwest. The MLS is owned by its member brokers and currently encompasses nearly 2,100 companies with more than 26,000 sales associates. Together, they serve 19 counties, mostly in western Washington, plus Grant, Kittitas and Okanogan counties in the central part of the state.
Friday, July 13, 2007
Seattle May 2007 Home Sales
Seattle region home sales held at a four-year low in May, with the sharpest declines in the lower price categories. The median price rose slightly to a new record, but the annual rate of increase was about half of last year's, a real estate information service reported.
A total of 6,864 new and resale houses and condos closed escrow in May in the Seattle-Tacoma-Bellevue metro area encompassing King, Snohomish and Pierce counties. That was up 11 percent from April but down 16.7 percent from May 2006, according to DataQuick Information Systems of La Jolla, Calif. The firm tracks real estate trends nationally via public property records. Read more...
A total of 6,864 new and resale houses and condos closed escrow in May in the Seattle-Tacoma-Bellevue metro area encompassing King, Snohomish and Pierce counties. That was up 11 percent from April but down 16.7 percent from May 2006, according to DataQuick Information Systems of La Jolla, Calif. The firm tracks real estate trends nationally via public property records. Read more...
Sunday, July 8, 2007
Housing Prices Around Washington State Rising at More Modest Rates
KIRKLAND , Wash. ( July 5, 2007) – With inventory at an all-time high in the Northwest Multiple Listing Service system, buyers are becoming more selective and sellers are receiving fewer multiple offers, according to MLS officials. Condominiums remain a bright spot, they noted.
Mid-year figures show the volume of pending sales of single family homes and condominiums (combined) is down about 7.3 percent from a year ago, while prices climbed 9 percent. Through June, members have reported 43,543 closed sales, off 3,430 units from the year ago total of 46,973. The median price for completed sales area-wide (through six months of 2007) is $326,000, up $27,000 (9 percent) from this time last year.
For single family homes (excluding condominiums), the year-to-date median sales price is $345,000. That’s a 10.2 percent increase from a year ago, but the trend is pointing toward single-digit increases, except perhaps for condominiums.
June marked the third straight month of single-digit gains in sales prices overall, although several counties are still reporting double-digit jumps. Read more and the figures...
Mid-year figures show the volume of pending sales of single family homes and condominiums (combined) is down about 7.3 percent from a year ago, while prices climbed 9 percent. Through June, members have reported 43,543 closed sales, off 3,430 units from the year ago total of 46,973. The median price for completed sales area-wide (through six months of 2007) is $326,000, up $27,000 (9 percent) from this time last year.
For single family homes (excluding condominiums), the year-to-date median sales price is $345,000. That’s a 10.2 percent increase from a year ago, but the trend is pointing toward single-digit increases, except perhaps for condominiums.
June marked the third straight month of single-digit gains in sales prices overall, although several counties are still reporting double-digit jumps. Read more and the figures...
Tuesday, July 3, 2007
Net's real-estate benefits unrealized, panel says
WASHINGTON — State laws and real-estate agents' business practices are preventing consumers from getting the full benefit of the competition that the Internet was expected to bring to the real-estate industry, federal regulators said Tuesday.
In a new report from the Federal Trade Commission (FTC) and the Department of Justice (DOJ), regulators said discount brokers and other rivals to traditional agents have been constrained in their ability to use the Internet to reduce fees and improve service. Read article...
In a new report from the Federal Trade Commission (FTC) and the Department of Justice (DOJ), regulators said discount brokers and other rivals to traditional agents have been constrained in their ability to use the Internet to reduce fees and improve service. Read article...
Monday, May 14, 2007
60 Minutes Questions the Full Service 6% Commission
There are many alternatives to the 6% commission and we think you as a consumer should understand them all.
Some sellers really need to pay 6% and receive the services provided by a full service agent but for the rest of you there are many options available.
60 minutes ran a special on Sunday evening describing the programs available through a discount broker in Washington. Their program provides sellers with an alternative to 6% but we feel you need to know that there are even greater savings to be had for the same service.
Our Extended Listing Program provides Sellers with all the tools necessary to get their home sold including Broker assistance with their transaction from beginning to end. The seller pays one flat fee of $999 and received the following:
Some sellers really need to pay 6% and receive the services provided by a full service agent but for the rest of you there are many options available.
60 minutes ran a special on Sunday evening describing the programs available through a discount broker in Washington. Their program provides sellers with an alternative to 6% but we feel you need to know that there are even greater savings to be had for the same service.
Our Extended Listing Program provides Sellers with all the tools necessary to get their home sold including Broker assistance with their transaction from beginning to end. The seller pays one flat fee of $999 and received the following:
- Listing in the Multiple Listing Service until sold with unlimited changes
- Yard arm and sign professionally installed with rider for your phone number so buyers can contact you directly for property information (posting unavailable in some areas)
- Flyer box installed on sign
- Up to 15 photos submitted to the MLS - photos submitted by Seller
- Electronic MLS lock box rental for the duration of the listing
- Listing on Realtor.com, FlatList.com and many local real estate company websites including Winderemere.com, Johnlscott.com, etc.
- Color Flyer emailed to seller to print as needed
- 2 directional arrows
- All required state and federal Seller's disclosures provided
- Broker support available for assistance with offers from Agents. Ongoing transaction support until closing including all necessary addendums, dislcosure statements, verifcation of earnest money and escrow setup and title order.
- Blank purchase and sale forms to be used if Seller find a Buyer not represented by a Buyer’s Agent. If Seller sells the property to their own buyer not represented by an agent, Flat List RE will not assist in that transaction.
The price of this package can't be beat by any competitor in the market today.
Too good to be true? Call us and we will be happy to give you references who have used this program to sell more than one home!
Monday, January 22, 2007
December Market Watch
December Housing Activity Continues Pattern of Growing Inventory,
Fewer Sales, Higher Prices
KIRKLAND , Wash. (Jan. 5, 2007) – December brought few surprises in housing activity around western Washington as buyers, sellers and members of Northwest Multiple Listing Service turned their attention to holidays. The storyline of recent months continued with brokers reporting growing inventory, fewer sales and rising prices.
In between shopping and severe storms, Northwest MLS notched 5,744 pending sales last month and added 5,357 new listings to inventory. December’s pending sales of single family homes and condominiums (combined) fell 9.8 percent from the same month a year ago. Of those transactions, condo sales improved on year-ago totals, rising 5.3 percent, but single family homes slipped by about 12.5 percent.
At month-end, prospective buyers could choose from 28,307 properties offered for sale across 19 counties. That’s up more than 37 percent from a year ago when there were 20,595 listings system-wide.
Every county has more inventory than 12 months ago – and higher asking prices.
Sales prices also jumped from a year ago. The median price for sales of single family homes and condominiums that closed during December was $315,000, up about 9.4 percent from twelve months ago when the median sales price was $288,000.
For single family homes only (excluding condos) the area-wide sales price was $330,000, up $29,000 (9.6 percent) from a year ago, but a $1,000 less than November’s median sales price.
Condo prices rose more sharply, climbing to $240,000 for last month’s completed transactions. That’s up 14.6 percent from December 2005 when the median selling price was $209,450. In November the area-wide median sales price for condos that sold was $249,900.
In King County, the median sales price for last month’s closed sales of single family homes (only) was $440,000, up about 12 percent from a year ago. Condo prices in King County jumped 21 percent, rising to nearly $270,000 from the year-ago median selling price of about $223,000.
Fewer Sales, Higher Prices
KIRKLAND , Wash. (Jan. 5, 2007) – December brought few surprises in housing activity around western Washington as buyers, sellers and members of Northwest Multiple Listing Service turned their attention to holidays. The storyline of recent months continued with brokers reporting growing inventory, fewer sales and rising prices.
In between shopping and severe storms, Northwest MLS notched 5,744 pending sales last month and added 5,357 new listings to inventory. December’s pending sales of single family homes and condominiums (combined) fell 9.8 percent from the same month a year ago. Of those transactions, condo sales improved on year-ago totals, rising 5.3 percent, but single family homes slipped by about 12.5 percent.
At month-end, prospective buyers could choose from 28,307 properties offered for sale across 19 counties. That’s up more than 37 percent from a year ago when there were 20,595 listings system-wide.
Every county has more inventory than 12 months ago – and higher asking prices.
Sales prices also jumped from a year ago. The median price for sales of single family homes and condominiums that closed during December was $315,000, up about 9.4 percent from twelve months ago when the median sales price was $288,000.
For single family homes only (excluding condos) the area-wide sales price was $330,000, up $29,000 (9.6 percent) from a year ago, but a $1,000 less than November’s median sales price.
Condo prices rose more sharply, climbing to $240,000 for last month’s completed transactions. That’s up 14.6 percent from December 2005 when the median selling price was $209,450. In November the area-wide median sales price for condos that sold was $249,900.
In King County, the median sales price for last month’s closed sales of single family homes (only) was $440,000, up about 12 percent from a year ago. Condo prices in King County jumped 21 percent, rising to nearly $270,000 from the year-ago median selling price of about $223,000.
Flat Fee MLS Basics
Traditionally, real estate companies and their agents charge 6% commission to list a property. In return, they place the home in the Multiple Listing Service (MLS), market the property in newspapers, hold open houses and do all the leg work involved in the transaction when an offer is received. The 6% commission is usually split 50/50 between the Listing Broker and the agent who sells the property, also known as the Buyer's Broker or Selling Broker.
Listing for a flat fee provides you with the resources you will need to get your home sold while saving you the listing office commission that is traditionally 3%. At the same time, you reserve the right to sell the property as a for sale by owner otherwise known as fsbo. When you find your own buyer and sell for sale by owner you can double your savings and pay no commission.
The flat fee mls programs have been around for years but the internet really brought their use to the forefront of the market. When properties that are listed in the MLS can be found all all real estate websites, the consumer (buyer) has access to information that was traditionally controlled by the real estate agents, real estate brokers and Realtors. With the educated consumer the seller no longer had to rely on the real estate brokerage to get the exposure necessary to find a buyer for their home. They had access to a pool of buyers searching outside the assistance of an agent.
Even though many buyers still turn to a buyer's agent for assistance with their purchase, research has shown that 99% of those same buyers are searching the public real estate sites for homes they may want to view whether on their own or through their real estate agent.
Now you as a seller have access to the Realtor's MLS, plus many buyers that my want to purchase for sale by owner. This exposure helps you get the most money for your home in the least amount of time.
Listing for a flat fee provides you with the resources you will need to get your home sold while saving you the listing office commission that is traditionally 3%. At the same time, you reserve the right to sell the property as a for sale by owner otherwise known as fsbo. When you find your own buyer and sell for sale by owner you can double your savings and pay no commission.
The flat fee mls programs have been around for years but the internet really brought their use to the forefront of the market. When properties that are listed in the MLS can be found all all real estate websites, the consumer (buyer) has access to information that was traditionally controlled by the real estate agents, real estate brokers and Realtors. With the educated consumer the seller no longer had to rely on the real estate brokerage to get the exposure necessary to find a buyer for their home. They had access to a pool of buyers searching outside the assistance of an agent.
Even though many buyers still turn to a buyer's agent for assistance with their purchase, research has shown that 99% of those same buyers are searching the public real estate sites for homes they may want to view whether on their own or through their real estate agent.
Now you as a seller have access to the Realtor's MLS, plus many buyers that my want to purchase for sale by owner. This exposure helps you get the most money for your home in the least amount of time.
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